Commonwealth Consolidated Acts

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 45

Incorrect or missing serial number

  (1)   A buyer or lessee, for new value, of a motor vehicle of a kind prescribed by the regulations for the purpose of this section, takes the motor vehicle free of a security interest in the motor vehicle if:

  (a)   the regulations provide that motor vehicles of that kind may, or must, be described by serial number; and

  (b)   there is a time during the period between the start of the previous day and the time of the sale or lease by reference to which a search of the register (by reference otherwise only to the serial number of the motor vehicle) would not disclose a registration that perfected the security interest; and

  (c)   the seller or lessor is:

  (i)   the person who granted the security interest; or

  (ii)   if the person who granted the security interest has lost the right to possess the motor vehicle, or is estopped from asserting an interest in the motor vehicle--another person who is in possession of the motor vehicle.

  (2)   Subsection   (1) does not apply if:

  (a)   the secured party is in possession of the motor vehicle immediately before the time of the sale or lease; or

  (b)   the motor vehicle is bought at a sale held by or on behalf of an execution creditor; or

  (c)   the buyer or lessee holds the motor vehicle:

  (i)   as inventory; or

  (ii)   on behalf of a person who would hold the motor vehicle as inventory; or

  (d)   the buyer or lessee buys or leases the motor vehicle with actual or constructive knowledge of the security interest.

Taking from prescribed persons

  (3)   A buyer or lessee, for new value, of a motor vehicle of a kind prescribed by the regulations for the purpose of this section takes the motor vehicle free of a security interest in the motor vehicle if:

  (a)   the regulations provide that motor vehicles of that kind may, or must, be described by serial number; and

  (b)   the seller or lessor is in a class of persons prescribed by the regulations for the purposes of this subsection.

  (4)   Subsection   (3) does not apply if:

  (a)   the secured party is in possession of the motor vehicle immediately before the time of the sale or lease; or

  (b)   the motor vehicle is bought at a sale held by or on behalf of an execution creditor; or

  (c)   the buyer or lessee holds the motor vehicle:

  (i)   as inventory; or

  (ii)   on behalf of a person who would hold the motor vehicle as inventory; or

  (d)   the buyer or lessee buys or leases the motor vehicle with actual or constructive knowledge that the sale or lease constitutes a breach of the security agreement that provides for the security interest.